What is a Home Renovation Loan and How to Avail it?

What is a Home Renovation Loan and How to Avail it?

December 19, 2019 0 By Saahil

Renovating a space to make it more appealing can become quite difficult to finance. Especially given the rise in the cost of construction material and manual labour in the last few years, the expenses incurred for a basic repair-job can be quite substantial.

In this scenario, most homeowners looking to renovate their houses are turning to various advances offered by financial institutions around the country for funds. These home renovation loans make for the ideal option when it comes to financing repairs, remodeling or renovation of houses.

What does this loan entail?

A loan for home renovation is a secured high-value advance that can be availed against collateral from any financial institution in the country. Individuals can choose to avail the advance by mortgaging their residential, industrial or commercial property.

A loan against property with a high loan amount of up to Rs.3.5 crore comes without any end-use restrictions. Meaning that they can be utilized to finance any number of renovation needs, including – remodeling your kitchen, constructing a new floor, exterior and interior painting, etc.

Following are a few benefits that individuals can avail from a home renovation loan –

  • High-value loans at an affordable rate of interest.
  • Flexible tenor ranging between 2 and 20 years that can allow individuals to repay the advance according to their convenience. It is crucial to determine the ideal tenor for loan against property before availing the advance to make the repayment process hassle-free.
  • Hassle-free loan approval and disbursal facilities, with the advance amount disbursed to your account within 4 days of its approval.

Further, with HFCs like Bajaj Housing Finance Limited, individuals can avail benefits like balance transfer and online account management, which can make the loan even more advantageous.

Additionally, they also provide pre-approved offers that can make availing financing hassle-free and straightforward. These offers are available on various financial products, including business loans, home loans, personal loans, etc. You can check your pre-approved offer by providing your name and phone number.

How to avail a loan for renovating a home?

To apply loan for home renovation, individuals need to satisfy a few eligibility criteria and submit the requisite documents.

Individuals can qualify for a loan against property by meeting these eligibility criteria  –

For salaried individuals –

  • Should be between 33 and 58 years of age.
  • Should be employed at an MNC, or any public or private sector company.
  • Should be a resident of India.

For self-employed individuals –

  • Should be between 25 and 70 years of age.
  • Should be self-employed with a regular income source.
  • Should be an Indian resident.

Apart from satisfying the eligibility criteria above, individuals must also submit the following documents to avail a home renovation loan –

For salaried individuals –

  • KYC documents.
  • Recent salary slips.
  • PAN and Aadhaar card.
  • Bank account statement from last 3 months.
  • Income tax returns.
  • Copy of all the documents related to the property to be mortgaged.

For self-employed individuals –

  • KYC documents.
  • Bank account statements from the last 6 months.
  • PAN and Aadhaar card.
  • Copy of all the documents related to the property to be mortgaged.

With these documents at one’s disposal, individuals can apply loan for home renovation by following the steps below –

  • Visit the lender’s website.
  • Fill in the online loan form and apply for the advance.
  • The lender will then get in touch with you in less than 24 hours.
  • If everything is in order, the loan will be approved within 48 hours.
  • Submit the respective documents to the representative appointed by the lending institution.

Individuals can easily avail the loan by following these few simple steps. However, it is crucial to ensure that they satisfy all the eligibility criteria put forth by the lender to avail the loan for home renovation without hassle.